UK will make foreign arms firms invest locally on big defence contracts

Contracts above this value are covered

50 million pounds

Overseas companies winning British defence contracts above 50 million pounds will have to deliver benefits to the UK, through jobs, factories, local suppliers and technology transfers.

The benefits could match the full value of the contract. A new Offset Authority will agree, value and monitor what each supplier owes, and the rules are due to apply from April 2027.

Defence spending with industry

11 % goes abroad 85 % goes to British firms

Defence spending with industry sends 11 per cent abroad, while 85 per cent already goes to British firms.

“Every pound we invest in defence should be judged by what it does for Britain,” the defence secretary said.

— Defence Secretary Wes Streeting